The Federal Government has announced the disbursement of N3.2 billion to a firm for 1.2 megawatts of peak mini-grid electrification in underserved communities in Bauchi State.
The Rural Electrification Agency disclosed this in a statement at the weekend.
The agency said with the facility, the power firm would deliver a combined capacity of over 1.2 MWp to specific allocations, including 450 kWp for Gabarin East, 400 kWp for Futuk, 200 kWp for Gangalawai, and 150 kWp for Daburai (Gabarin West).
The Federal Government said the initiative is part of its Renewable Energy Scale-up, DARES, Program with an earmarked N100 billion revolving credit facility with a Nigerian bank.
“The funding mechanism is rooted in a landmark Memorandum of Understanding signed in February between the REA and Lotus Bank, which established a N100 billion revolving credit facility.
“Under this framework, developers can access up to N8 billion in equipment procurement financing with tenures of 18 months,” the statement reads.
Commenting on the development, Managing Director of the REA, Abba Aliyu, emphasized that the true success of the disbursements lies in the efficiency and integrity of the process.
Nigerian government had also secured N7.4 billion in funding for 7 megawatts of mini-grid electrification in Ebonyi State.
